Shareholder advisory firm Glass Lewis is recommending investors withhold their endorsement of Volkswagen’s (VOWG_p.DE) boards at an annual general meeting in July, citing ongoing concerns about how the carmaker is tackling its diesel emissions scandal.
“As in previous years, we continue to express concern at the company’s approach and transparency in addressing the diesel issue and effecting cultural change,” Glass Lewis said in a statement.
Volkswagen admitted in 2015 to cheating U.S. diesel engine tests, sparking the biggest business crisis in its history.
The German group’s annual general meeting is scheduled for July 22 and shareholders are being asked, as usual, to ratify the actions of both management and supervisory boards.
Glass Lewis said it welcomed the fact that an investigation by law firm Gleiss Lutz did not produce evidence that current management board members had committed breaches of duty with regard to the diesel scandal.
But it added: “We continue to have substantial concerns with the company’s exposure to legal and regulatory risks, and the company’s disclosure thereof.”
“We do not believe that shareholders can confidently conclude from the disclosure provided that the management board has taken the necessary steps to regain stakeholder confidence, sufficiently strengthen the company’s compliance management, and effect necessary cultural change,” it added.
Volkswagen had no immediate comment.